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Improper TANF payments found in Michigan

Compliance Monitor, December 5, 2007

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The OIG wanted to determine whether or not the Michigan Department of Human Services made improper Temporary Assistance for Needy Families (TANF) basic assistance payments. The TANF program is a block grant program that gives eligible families opportunities to work and other assistance such as food, clothing, shelter, and utilities.

The OIG found:

• the state agency made some TANF basic assistance payments that did not adequately document all eligibility and payment determinations
• 51 of the 150 payments were improper
• for 38 of the payments, the recipient families were ineligible for TANF basic assistance
• the state agency paid $36,274,769 for 161, 753 improper payments

The OIG recommended the state agency:

• use the results of the review to help ensure compliance with federal and state TANF requirements by reemphasizing to recipients the need to provide accurate and timely information
• use the results to ensure compliance by requiring its district office employees to verify eligibility information and maintain appropriate documentation in all case files
• determine the eligibility of all recipients listed in the review as improperly enrolled and ensure that further assistance is denied for those who remain ineligible
• recalculate assistance budgets for all recipients identified in the review as having received improperly calculated payments

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